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Encouragement of Growth in Tourism and Hospitality Related
Industries
Issue
West Virginia’s hospitality and tourism industry is the third largest industry in West Virginia,
bringing in 5 billion dollars a year and creating jobs, preserving and promoting the natural beauty
of the state, and marketing the state in a positive way. That industry has tremendous potential
for growth. In a time where West Virginia’s workforce participation is at an all-time low and
when West Virginia has seen declines in both its energy and manufacturing industries and is
facing corresponding revenue declines and budget shortfalls, West Virginia must take a careful
look at all laws and regulations that hinder growth in any of its industry sectors, including
hospitality and tourism. This is especially the case where those laws and regulations impact
other economic sectors, stifle job creation, and decrease state revenues.
West Virginia is a state with an aging population that must strive to provide the quality of place
desired by millennials and other young professionals whose retention and attraction into the state
are integral to West Virginia’s future. To support the hospitality and tourism industry and the
creation of the desired quality of place necessary to retain and recruit talent in the state, the West
Virginia legislature must carefully examine and analyze the state’s laws and regulations for any
areas where over-regulation inhibits our growth. This includes analyzing the antiquated ways
West Virginia deals with traditionally sensitive issues, such as regulation of access to alcohol in
this state.
Discussion
Retail and Restaurant Sales
West Virginia is one of only 12 states that continues to cling to Prohibition-era Blue Laws that
bar Sunday liquor sales. Additionally, in West Virginia, beer and wine may only be sold after 1
p.m. on Sundays. All of our surrounding states allow for the sale of liquor, beer, and wine on
Sunday, in some form or another. In Ohio, liquor may be sold from 1 p.m. to 2:30 a.m., with a
special Sunday license. Maryland has no state laws regarding Sunday sales, variable by county.
In Kentucky, Sunday sales of liquor were permitted as of 2005 but some local ordinances exist to
permit Sunday sales at restaurants. In Pennsylvania, liquor may be sold from 12 pm to 5 pm on
Sunday. In Virginia, liquor is sold on Sundays in ABC stores.
West Virginia’s laws are the most restrictive as compared to our neighboring states. On Sundays
in West Virginia, liquor sales are prohibited both on premise and off premise and beer and wine
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may only be sold after 1 p.m. The hospitality and tourism industry needs these laws to change
to compete with neighboring states for tourism dollars. Passage of a bill in the legislature,
commonly known as the Brunch Bill, would allow private licensees to begin selling alcohol at
10:30 a.m. instead of 1:00 p.m. on Sundays. This is a simple change in the law that would result
in additional dollars flowing into the economy of West Virginia through our resorts, restaurants,
grocery stores, and other venues, much of which would come from out of state visitors. By
expanding the time restaurants could serve alcohol on Sundays, as well as allowing for the
Sunday retail sales of liquor, beer, and wine, there will be a corresponding increase in profits for
hundreds of local West Virginia businesses, from the smallest mom and pop shops, restaurants,
and golf courses, to our largest resorts and tourist destinations. With that increased revenue also
comes a corresponding increase in the pool of tax revenue available to fund much needed
infrastructure and other projects and programs in the state.
Breweries, Craft Distilleries, and Farm Wineries
According to an economic impact study by Beer Serves America, the beer industry in West
Virginia – made up of brewers, beer importers, beer distributors and beer retailers – contributes
more than $940 million annually to West Virginia’s economy. This further highlights the
importance of finding ways to encourage growth in that industry. Craft breweries are the largest
growing manufacturing industry in the state of West Virginia. This is part of a nationwide trend.
In 2013, there were 2,650 craft breweries in the United States, and the number continues to grow
quickly. On the average, 1.2 craft breweries open every day nationwide.
The rise in popularity and sales in the craft brewery industry has had a spillover effect into craft
distilleries. While only ten years ago there were around 50 craft distilleries in the United States,
there are now 769 craft distilleries, according the American Craft Spirits Association. Many of
these craft distilleries seek to either gain traction on a local level, or even on a national level.
These distilleries support or maintain relationships with local farms that supply ingredients and
their agricultural partnerships create a further positive impact on the local economy.
Despite the popularity of these craft breweries and distilleries, West Virginia lags behind in its
growth in and its support of these industries, especially when compared with the explosive
growth in other states and the encouragement these industries are given in other locales. For
example, in Western North Carolina alone, the brewing industry in the past decade has gone
from 50,000 barrels of output per year to one million barrels per year and has not only created
manufacturing jobs but created an indirect benefit to the economy in terms of the establishment
of brew pubs and brewery tours, local farm-to-table spending and the corresponding indirect
spending associated with additional tourists visiting and spending money in that part of the state.
Those breweries employ hundreds of people. Just two of those breweries cost $250 million
dollars to build, resulting in additional construction jobs and manufacturing jobs once the
facilities are operational.
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West Virginia’s neighbor Ohio is one of the top 10 wine producers in the country, making
millions of gallons of wine per year. Our other neighbor Virginia has gone from 10 wineries to
270 in the last decade and has similarly created a tourism destination out of its winery tours,
pumping millions of dollars into the state’s economy, both directly and indirectly, by increasing
hotel stays, restaurant sales, and other (often local) spending occasioned by visitors participating
in the winery tours. This leads us to the obvious question of why West Virginia has not seen
similar growth? Part of our failing in that area is no doubt a result of our overall business
climate, but in part it is our antiquated notions of and overregulation specific to those industries.
For example, our 11 craft distilleries in the state face lower production limits than all of our
neighboring states. Additionally, Sunday operation are prohibited for distilleries in West
Virginia, but distilleries in D.C., Kentucky, Maryland, Ohio, Pennsylvania, Tennessee, and
Virginia are allowed to operate on Sundays, giving them a distinct edge over our West Virginia
distilleries. An overall review of our State’s alcohol laws is necessary to determine what specific
laws and regulations are hindering our growth in these potentially high growth agriculture and
manufacturing industries, but Sunday operations are a critical piece of supporting the growth of
those industries.
Chamber Position
To create the desired quality of place necessary to attract and retain talent, and to support much
needed growth in revenues and jobs in manufacturing, tourism, and other sectors of our overall
economy, West Virginia must carefully look at those areas where we curb development through
archaic and unnecessarily restrictive policies and directly hinder the growth of certain industry
sectors based on outdated notions that have no place in a modern society. These are real
economic development issues that, handled appropriately, create and support real jobs and real
dollars (including tax dollars) and make real economic impact.
West Virginia’s natural beauty is beyond compare and its location and natural attributes make it
prime for growth in hospitality and tourism, but we need to support those industries by getting
rid of unnecessary obstacles. Our tourism industry is an industry that should be particularly
nurtured because it requires preservation of the state’s natural beauty. That industry has
tremendous growth potential and is an integral part in an overall healthy economy. Our craft
brewery, winery, and distillery manufacturing industries also not only have tremendous growth
potential but help support and have close ties to agriculture and farming in West Virginia. As
such, we owe it to ourselves to take a non-biased objective look at all laws and regulations
standing in the way of the growth of those industries and make the changes necessary to allow
them to flourish and develop their full potential. Success in that endeavor requires removing all
restrictions on Sunday operations and sales, including retail sales, on-premise consumption, and
distillery-related operations, of beer, wine, and liquor.